6-month average pairwise correlations are at multi-year lows across major equity markets
Correlation is the market structure tell.
Goldman says stock correlations are at multi-year lows across the major equity markets, using 6-month average pairwise correlation.
They say correlations have fallen sharply within Technology too.
That means index-level strength can hide a lot more single-stock dispersion.
If valuations are not likely to rise, Goldman says earnings become the critical driver of returns (duh).
Correlation is the market structure tell.
Goldman says stock correlations are at multi-year lows across the major equity markets, using 6-month average pairwise correlation.
They say correlations have fallen sharply within Technology too.
That means index-level strength can hide a lot more single-stock dispersion.
If valuations are not likely to rise, Goldman says earnings become the critical driver of returns (duh).
